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Crypto mining in China takes a hit following Coronavirus outbreak

Crypto mining in China takes a hit following Coronavirus outbreak

Crypto mining operations in China are finally feeling the heat from the much-dreaded Coronavirus outbreak as authorities continue to struggle to put a brake on the rapidly growing infections. 

The prospect of this deadly virus becoming a global pandemic is daunting. With eighty percent of the Chinese workforce forced to remain indoors, businesses are taking a severe hit with markets witnessing around eight percent (8.2%) plunge in the index, the biggest decline in five years. In spite of a panic-stricken economy, it was reported last week that Bitcoin mining farms are operating as usual as the locations of these crypto mining farms are relatively safe.

Crypto mining farms can’t continue to operate anymore

Unfortunately, though, not for long. On 4th February 2020, a local media outlet declared that the epidemic has forced a particular mining farm, named BTC.top, to put up shutters in the wake of widespread disruptions in mining operations. CEO Jiang Zhuoer confirmed that all the machinery had been shut down on the farm that’s situated in a remotely-located city.  

According to Zhuoer, it isn’t safe to conduct mining operations anymore, and hence the firm has been advised to put a stop to all crypto mining activities. It is a difficult period for the mining workers as they have never halted their operations before. We have been asked not to return to work until the quarantine control period ends, and we don’t know, for now, how long that would take, claimed Zhuoer.

However, it isn’t just the daily mining operations suffering the losses. Some of the leading suppliers of mining equipment in the country, such as Bitmain, Canaan Creative, and MicroBT, have decided to postpone their after-sale services until mid-Feb.

Meanwhile, some researchers believe that the cryptocurrency industry’s most anticipated event, Bitcoin halving, scheduled to be held in May 2020, is expected to spark some sharp turn of events at the price market. If the virus outbreak is not contained until then and the event happens to overlap with the life-threatening consequences of the disease, there will be a massive impact on the production, maintenance, and delivery of the mining equipment, all leading to a drastic reduction in the supply of BTC.

Featured Image by Pixabay

Manasee Joshi

Manasee Joshi

An avid reader and an enthusiastic writer, Manasee recently chose to dedicate her time doing freelance writing. A degree in English literature and experiences in Administration, HR, finance, literature, creativity and innovation tucked under her belt, she crafts engaging and compelling content for crypto and blockchain audience.

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